Hudson City Bancorp, Inc. Reports Quarterly Earnings Of $39.2 Million

    Hudson City Bancorp, Inc. Reports Quarterly Earnings Of $39.2 Million

DECLARED QUARTERLY CASH DIVIDEND OF $0.04 PER SHARE

PR Newswire

PARAMUS, N.J., July 23, 2014

PARAMUS, N.J., July 23, 2014 /PRNewswire/ --Hudson City Bancorp, Inc.
(NASDAQ: HCBK) (the "Company"), the holding company for Hudson City Savings
Bank (the "Bank"), reported today net income of $39.2 million for the quarter
ended June 30, 2014 as compared to net income of $48.7 million for the quarter
ended June 30, 2013. Diluted earnings per share amounted to $0.08 for the
second quarter of 2014 as compared to diluted earnings per share of $0.10 for
the second quarter of 2013. For the six months ended June 30, 2014, the
Company reported net income of $81.7 million as compared to net income of
$96.7 million for the six months ended June 30, 2013. Diluted earnings per
share amounted to $0.16 for the six months ended June 30, 2014 as compared to
diluted earnings per share of $0.19 for the six months ended June 30, 2013.

The Company also reported today that the Board of Directors declared a
quarterly cash dividend of $0.04 per share payable on August 29, 2014 to
shareholders of record on August 8, 2014.

Financial highlights for the second quarter of 2014 are as follows:

  oThe Bank's Tier 1 leverage capital ratio increased to 11.26% at June 30,
    2014 as compared to 10.82% at December 31, 2013.

  oNon-performing loans decreased $41.0 million to $1.01 billion at June 30,
    2014 as compared to $1.05 billion at December 31, 2013. Early stage loan
    delinquencies (defined as loans that are 30 to 89 days delinquent)
    decreased $62.0 million to $411.4 million at June 30, 2014 from $473.4
    million at December 31, 2013.

  oThere was no provision for loan losses for the second quarter of 2014 and
    the linked first quarter of 2014 as compared to $12.5 million for the
    second quarter of 2013 reflecting improving home prices and economic
    conditions and decreases in total delinquent loans and total loans.

  oOur interest rate spread and net interest margin were 1.00% and 1.29%,
    respectively, for the second quarter of 2014 as compared to 1.38% and
    1.64%, respectively, for the second quarter of 2013. For the linked first
    quarter of 2014, our interest rate spread and net interest margin were
    1.12% and 1.41%, respectively.

  oGains on the sales of mortgage-backed securities amounted to $19.5 million
    and $35.5 million for the quarter and six months ended June 30, 2014,
    respectively, as compared to $7.2 million for both the quarter and six
    months ended June 30, 2013.

  oFDIC expense decreased $6.5 million to $13.1 million for the second
    quarter of 2014 as compared to $19.6 million for the second quarter of
    2013 and decreased $16.7 million to $27.0 million for the first six months
    of 2014 as compared to $43.7 million for the first six months of 2013 due
    to decreases in our assessment rate and a reduction in the size of our
    balance sheet.

  oFederal funds sold and other overnight deposits increased $1.13 billion to
    $5.32 billion at June 30, 2014 from $4.19 billion at December 31, 2013.
    This increase is primarily due to repayments of mortgage-related assets
    and the lack of attractive reinvestment opportunities in the current low
    interest rate environment as available short term reinvestment
    opportunities continue to carry low yields, and medium and longer term
    opportunities available to us are creating more significant duration risk
    at relatively low yields.

  oTotal deposits decreased $958.5 million, or 4.5%, to $20.51 billion at
    June 30, 2014 from $21.47 billion at December 31, 2013 due to our decision
    to maintain deposit rates that allow us to control deposit reductions at a
    time when there are limited investment opportunities with attractive
    yields to reinvest the funds received from payment activity on
    mortgage-related assets.

Statement of Financial Condition Summary

Total assets decreased $906.7 million, or 2.4%, to $37.70 billion at June 30,
2014 from $38.61 billion at December 31, 2013. The decrease in total assets
reflected a $1.65 billion decrease in total mortgage-backed securities and a
$937.9 million decrease in net loans, partially offset by a $1.13 billion
increase in cash and cash equivalents and a $605.7 million increase in
investment securities.

Total cash and cash equivalents increased $1.13 billion to $5.45 billion at
June 30, 2014 as compared to $4.32 billion at December 31, 2013. This
increase is primarily due to repayments on mortgage-related assets and the
lack of attractive reinvestment opportunities in the current low interest rate
environment as available short term reinvestment opportunities continue to
carry low yields, and medium and longer term opportunities available to us are
creating more significant duration risk at relatively low yields. We have
maintained lower deposit rates to allow a reduction in our deposits to help
alleviate the pressure created by our increasing cash position. Accordingly,
we have used a portion of our excess cash inflows to fund these deposit
reductions.

Net loans decreased to $23.00 billion at June 30, 2014 as compared to $23.94
billion at December 31, 2013 due primarily to a decrease in loan production.
During the first six months of 2014, our loan production (origination and
purchases) amounted to $813.4 million as compared to $1.73 billion for the
same period in 2013. Loan production was offset by principal repayments of
$1.72 billion in the first six months of 2014, as compared to principal
repayments of $3.55 billion for the first six months of 2013. Loan production
declined during the first six months of 2014 as compared to the same period in
2013 which reflects our limited appetite for adding long-term fixed-rate
mortgage loans to our portfolio in the current low market interest rate
environment. In addition, loan production has been impacted by the new
qualified mortgage regulations issued by the Consumer Financial Protection
Bureau (the "CFPB"). Effective in January 2014, we discontinued our reduced
documentation loan program in order to comply with the new requirements to
validate a borrower's ability to repay and the corresponding safe harbor for
loans that meet the requirements for a "qualified mortgage." During 2013, 22%
of our total loan production consisted of reduced documentation loans to
borrowers with acceptable credit and larger down payments resulting in loss
ratios similar to our full documentation portfolio.

Total mortgage-backed securities decreased $1.65 billion to $7.30 billion at
June 30, 2014 from $8.95 billion at December 31, 2013. The decrease was due
primarily to security sales of $984.9 million and repayments of $769.0 million
of mortgage-backed securities during the first six months of 2014. We sold
these mortgage-backed securities to take advantage of current market demand
and prices in advance of an anticipated rising interest rate environment. The
proceeds from the sales have been invested primarily in short-term liquid
assets with some invested in mortgage-backed securities. While this further
increases our levels of low-yielding liquid assets, we believe this positions
our balance sheet for future strategic initiatives such as a potential balance
sheet restructuring.

Total investment securities increased $605.7 million to $942.0 million at June
30, 2014 as compared to $336.3 million at December 31, 2013. The increase was
due primarily to purchases of $600.8 million of U.S. Treasury securities with
a remaining term to maturity of approximately 18 months. These securities were
purchased to be used as collateral for our outstanding borrowings.

Total liabilities decreased $977.0 million, or 2.9%, to $32.89 billion at June
30, 2014 from $33.86 billion at December 31, 2013. The decrease in total
liabilities primarily reflected a decrease in total deposits of $958.5
million, while total borrowed funds remained unchanged.

Total shareholders' equity increased $70.3 million to $4.81 billion at June
30, 2014 as compared to $4.74 billion at December 31, 2013. The increase was
primarily due to net income of $81.7 million and a $19.2 million change in
accumulated other comprehensive income, partially offset by cash dividends
paid to common shareholders of $40.1 million. At June 30, 2014, our
consolidated shareholders' equity to asset ratio was 12.77%, and our tangible
book value per share was $9.34.

Accumulated other comprehensive income amounted to $25.6 million at June 30,
2014 as compared to accumulated other comprehensive income of $6.3 million at
December 31, 2013. The $19.2 million change in accumulated other
comprehensive income primarily reflects an increase in the net unrealized gain
on securities available for sale at June 30, 2014 as compared to December 31,
2013.

Statement of Income Summary

The Federal Open Market Committee of the Board of Governors of the Federal
Reserve System (the "FOMC") noted that economic activity has improved in
recent months. The FOMC noted that, the unemployment rate though lower,
remains elevated. Household spending and business fixed investment continue to
advance, while the recovery in the housing sector remained slow. The national
unemployment rate decreased to 6.1% in June 2014 from 6.7% in December 2013
and from 7.5% in June 2013. The FOMC decided to maintain the overnight lending
target rate at zero to 0.25% during the second quarter of 2014.

Beginning in July 2014, the FOMC decided to reduce the rate of purchases of
agency mortgage-backed securities to $15.0 billion per month from $20.0
billion per month and to reduce purchases of longer-term Treasury securities
to $20.0 billion per month from $25.0 billion per month. The FOMC noted that
its sizeable and still increasing holdings of longer-term securities should
maintain downward pressure on longer-term interest rates, support mortgage
markets and help to make broader financial conditions more accommodative.

Net interest income decreased $42.2 million, or 26.4%, to $117.7 million for
the second quarter of 2014 from $159.9 million for the second quarter of 2013
reflecting the overall decrease in the average balance of interest-earning
assets and interest-bearing liabilities, the continued low interest rate
environment and a continued increase in the average balance of short-term
liquid assets, including U.S. Treasury securities and Federal funds sold and
other overnight deposits. Our interest rate spread decreased to 1.00% for the
second quarter of 2014 as compared to 1.12% for the linked first quarter of
2014 and 1.38% for the second quarter of 2013. Our net interest margin was
1.29% for the second quarter of 2014 as compared to 1.41% for the linked first
quarter of 2014 and 1.64% for the second quarter of 2013.

Net interest income decreased $87.2 million, or 25.9%, to $250.0 million for
the first six months of 2014 as compared to $337.2 million for the first six
months of 2013. Our interest rate spread decreased 39 basis points to 1.07%
for the six months ended June 30, 2014 as compared to 1.46% for the six months
ended June 30, 2013. Our net interest margin decreased 36 basis points to
1.35% for the six months ended June 30, 2014 as compared to 1.71% for the six
months ended June 30, 2013. The decrease in our interest rate spread and net
interest margin for the three and six months periods ended June 30, 2014 is
primarily due to repayments of higher yielding assets due to the low interest
rate environment and an increase in the average balance of Federal funds and
other overnight deposits which yield 0.25%.

Total interest and dividend income for the second quarter of 2014 decreased
$48.3 million, or 13.9%, to $299.2 million from $347.5 million for the second
quarter of 2013. The decrease in total interest and dividend income was due to
a $1.88 billion decrease in the average balance of total interest-earning
assets during the second quarter of 2014 to $37.07 billion from $38.95 billion
for the second quarter of 2013 as well as a decrease in the annualized
weighted-average yield on total interest earning assets. The decrease in the
average balance of total interest-earning assets for the second quarter of
2014 as compared to the second quarter of 2013 was due primarily to repayments
of mortgage-related assets as a result of the low interest rate environment
and our decision not to reinvest in low yielding, long term assets. The
annualized weighted-average yield on total interest-earning assets was 3.23%
for the second quarter of 2014 as compared to 3.57% for the second quarter of
2013. The decrease in the annualized weighted average yield of
interest-earning assets was due to lower market interest rates earned on
mortgage-related assets and a $2.31 billion increase in the average balance of
Federal funds sold and other overnight deposits to $5.25 billion which had an
average yield of 0.25% during the second quarter of 2014.

Total interest and dividend income for the six months ended June 30, 2014
decreased $101.9 million, or 14.3%, to $611.7 million from $713.6 million for
the six months ended June 30, 2013. The decrease in total interest and
dividend income was primarily due to a decrease in the average balance of
total interest-earning assets of $1.80 billion, or 4.6%, to $37.28 billion for
the six months ended June 30, 2014 from $39.08 billion for the six months
ended June 30, 2013. The decrease in total interest and dividend income was
also due to a decrease of 37 basis points in the annualized weighted-average
yield on total interest-earning assets to 3.28% for the six months ended June
30, 2014 from 3.65% for the six months ended June 30, 2013.

Interest on first mortgage loans decreased $36.8 million, or 13.0%, to $247.1
million for the second quarter of 2014 from $283.9 million for the second
quarter of 2013. The decrease in interest on first mortgage loans was
primarily due to a $2.13 billion decrease in the average balance of first
mortgage loans to $23.08 billion for the second quarter of 2014 from $25.21
billion for the same quarter in 2013. The decrease in interest income on
first mortgage loans was also due to a 22 basis point decrease in the
annualized weighted-average yield to 4.28% for the second quarter of 2014 from
4.50% for the second quarter of 2013.

For the six months ended June 30, 2014, interest on first mortgage loans
decreased $77.9 million, or 13.5%, to $500.3 million from $578.2 million for
the six months ended June 30, 2013. This was primarily due to a $2.38 billion
decrease in the average balance of first mortgage loans to $23.31 billion for
the six months ended June 30, 2014 from $25.69 billion for the six months
ended June 30, 2013. The decrease in interest income on mortgage loans was
also due to a 21 basis point decrease in the annualized weighted-average yield
to 4.29% for the six months ended June 30, 2014 from 4.50% for the six months
ended June 30, 2013

The decrease in the annualized weighted-average yield earned on first mortgage
loans during the three and six month periods ended June 30, 2014 was due to
repayments of higher-yielding loans and the rates on newly originated mortgage
loans which have been below the average yield on our portfolio, reflecting
overall low market rates. Consequently, the average yield on our loan
portfolio continued to decline during the first six months of 2014. In
addition, our loan production decreased reflecting our low appetite for adding
long-term fixed-rate mortgage loans to our portfolio in the current low
interest rate environment and also the impact of the CFPB's new qualified
mortgage regulations, which went into effect in January 2014.

Interest on mortgage-backed securities decreased $11.0 million to $41.7
million for the second quarter of 2014 from $52.7 million for the second
quarter of 2013. This decrease was due primarily to a $2.06 billion decrease
in the average balance of mortgage-backed securities to $7.65 billion for the
second quarter of 2014 from $9.71 billion for the second quarter of 2013. This
was partially offset by an increase in the annualized weighted-average yield
of mortgage-backed securities to 2.18% for the second quarter of 2014 as
compared to 2.17% for second quarter of 2013.

Interest on mortgage-backed securities decreased $23.2 million to $90.4
million for the six months ended June 30, 2014 from $113.6 million for the six
months ended June 30, 2013. This decrease was due primarily to a $1.97
billion decrease in the average balance of mortgage-backed securities to $8.03
billion during the first six months of 2014 from $10.00 billion for the first
six months of 2013. The annualized weighted-average yield of mortgage-backed
securities was 2.25% for the first six months of 2014 as compared to 2.27% for
the first six months of 2013.

The decrease in the average yield earned on mortgage-backed securities during
the three and six month periods ended June 30, 2014 was a result of principal
repayments on securities that have higher yields than the existing portfolio
as well as the re-pricing of variable rate mortgage-backed securities in this
low interest rate environment. The decrease in the average balance of
mortgage-backed securities during this same period was due to sales of
mortgage-backed securities and principal repayments. During the first six
months of 2014, we sold $984.9 million of mortgage-backed securities to
realize gains that would decrease as market interest rates increase and as
repayments reduced the outstanding principal balance on these securities.

Interest on investment securities decreased $1.4 million to $1.5 million for
the second quarter of 2014 as compared to $2.9 million for the second quarter
of 2013. This decrease was due to a 110 basis point decrease in the
annualized weighted-average yield to 1.12% for the second quarter of 2014 from
2.22% for the second quarter of 2013. The decrease in the average yield
earned reflects current market interest rates. This effect of the decrease in
the average yield earned was partially offset by a $17.2 million increase in
the average balance of investment securities to $539.1 million for the second
quarter of 2014 from $521.9 million for the second quarter of 2013. The
increase in the average balance of investment securities for the second
quarter of 2014 was due to the purchase of $600.8 million of U.S. Treasury
securities partially offset by the sale of corporate bonds with an amortized
cost of $405.7 million in the second half of 2013.

For the six months ended June 30, 2014, interest on investment securities
decreased $3.0 million to $2.9 million as compared to $5.9 million for the six
months ended June 30, 2013. This decrease was due to a decrease of 111 basis
points in the annualized weighted-average yield to 1.30% for the first six
months of 2014 from 2.41% for the same period in 2013. This decrease was also
due to a $45.0 million decrease in the average balance of investment
securities to $442.3 million for the first six months of 2014 as compared to
$487.3 million for the first six months of 2013. The decrease in the
average yield earned reflects current market interest rates.

Interest on Federal funds sold and other overnight deposits amounted to $3.3
million for the second quarter of 2014 as compared to $2.0 million for the
second quarter of 2013. The increase in interest income on Federal funds sold
and other overnight deposits was primarily due to an increase in the average
balance of Federal funds sold and other overnight deposits. The average
balance of Federal funds sold and other overnight deposits amounted to $5.25
billion for the second quarter of 2014 as compared to $2.94 billion for the
second quarter of 2013. The yield earned on Federal funds sold and other
overnight deposits was 0.25% for the 2014 second quarter and 0.27% for the
2013 second quarter.

Interest on Federal funds sold and other overnight deposits amounted to $6.2
million for the six months ended June 30, 2014 as compared to $2.8 million for
the six months ended June 30, 2013 due primarily to an increase in the average
balance of Federal funds sold and other overnight deposits. The average
balance of Federal funds sold and other overnight deposits amounted to $4.94
billion for the first six months of 2014 as compared to $2.31 billion for the
same period in 2013. The yield earned on Federal funds and other overnight
deposits was 0.25% for both the six months ended June 30, 2014 and 2013,
respectively.

The increase in the average balance of Federal funds sold and other overnight
deposits for the three and six month periods ended June 30, 2014 was due
primarily to repayments on mortgage-related assets and our low appetite for
adding long-term fixed-rate mortgage loans to our portfolio in the current low
interest rate environment.

Total interest expense for the quarter ended June 30, 2014 decreased $6.2
million, or 3.3%, to $181.5 million from $187.7 million for the quarter ended
June 30, 2013. This decrease was primarily due to a $2.12 billion, or 6.2%,
decrease in the average balance of total interest-bearing liabilities to
$32.29 billion for the quarter ended June 30, 2014 from $34.41 billion for the
quarter ended June 30, 2013. This was offset by an increase in the annualized
weighted-average cost of total interest-bearing liabilities which was 2.23%
for the quarter ended June 30, 2014 as compared to 2.19% for the quarter ended
June 30, 2013. The decrease in the average balance of total interest-bearing
liabilities was due to a $2.12 billion decrease in the average balance of
total deposits.

For the six months ended June 30, 2014 total interest expense decreased $14.6
million, or 3.9%, to $361.7 million from $376.3 million for the six months
ended June 30, 2013. This decrease was primarily due to a $2.09 billion, or
6.0%, decrease in the average balance of total interest-bearing liabilities to
$32.59 billion for the six months ended June 30, 2014 compared with $34.68
billion for the six months ended June 30, 2013. This was partially offset by
an increase in the annualized weighted-average cost of total interest-bearing
liabilities to 2.21% for the six months ended June 30, 2014 as compared to
2.19% for the six months ended June 30, 2013. The decrease in the average
balance of total interest-bearing liabilities was due to a $2.09 billion
decrease in the average balance of total deposits.

Interest expense on deposits decreased $6.4 million, or 13.7%, to $40.2
million for the second quarter of 2014 from $46.6 million for the second
quarter of 2013. The decrease is primarily due to a $2.13 billion decrease in
the average balance of interest-bearing deposits to $20.11 billion for the
second quarter of 2014 from $22.24 billion for the second quarter of 2013. In
addition, the average cost of interest-bearing deposits declined 4 basis
points to 0.80% for the second quarter of 2014 from 0.84% for the second
quarter of 2013.

For the six months ended June 30, 2014, interest expense on deposits decreased
$14.9 million, or 15.6%, to $80.8 million from $95.7 million for the six
months ended June 30, 2013. This decrease is due primarily to a decrease of
$2.10 billion in the average balance of interest-bearing deposits to $20.41
billion during the first six months of 2014 from $22.51 billion for the first
six months of 2013. The decrease is also due to a decrease in the average
cost of interest-bearing deposits of 6 basis points to 0.80% for the first six
months of 2014 from 0.86% for the first six months of 2013.

The decrease in the average cost of deposits for 2014 reflected the low market
interest rates and our decision to maintain lower deposit rates to continue
our balance sheet reduction.

Interest expense on borrowed funds increased slightly to $141.4 million for
the second quarter of 2014 from $141.1 million for the second quarter of
2013. For the six months ended June 30, 2014 interest expense on borrowed
funds increased to $280.9 million as compared to $280.6 million for the six
months ended June 30, 2013. The average cost of borrowed funds was 4.59% for
both the three and six months ended June 30, 2014 as compared to 4.58% for
both the three and six months ended June 30, 2013. The average balance of
borrowings was unchanged for both comparative periods.

Borrowings amounted to $12.18 billion at June 30, 2014 with an average cost of
4.59%. There are no scheduled maturities for 2014. During the first quarter
of 2014, we modified $800.0 million of FHLB repurchase agreements to be FHLB
advances. This reduced our collateral requirements related to the repurchase
agreements, which use securities as collateral. FHLB advances are secured by a
blanket lien on our loan portfolio. The modification resulted in a slight
increase in the weighted average cost of the borrowings that were modified.

There was no provision for loan losses for the quarter ended June 30, 2014 and
for the linked first quarter of 2014 as compared to a $12.5 million provision
for loan losses for the quarter ended June 30, 2013. The decrease in our
provision for loan losses was due primarily to improving home prices and
economic conditions, a decrease in the size of the loan portfolio and a
decrease in the amount of total delinquent loans.

Non-performing loans, defined as non-accruing loans and accruing loans
delinquent 90 days or more, amounted to $1.01 billion at June 30, 2014 as
compared to $1.03 billion at March 31, 2014, $1.05 billion at December 31,
2013 and $1.11 billion at June 30, 2013. The ratio of non-performing loans to
total loans was 4.35% at June 30, 2014 as compared to 4.32% at March 31, 2014,
4.35% at December 31, 2013 and 4.42% at June 30, 2013. Notwithstanding the
decrease in non-performing loans, the foreclosure process and the time to
complete a foreclosure, while improving, continue to be prolonged, especially
in New York and New Jersey where approximately 76% of our non-performing loans
are located. This protracted foreclosure process delays our ability to
resolve non-performing loans through the sale of the underlying collateral and
our ability to maximize any recoveries.

Loans delinquent 30 to 59 days amounted to $274.9 million at June 30, 2014 as
compared to $276.0 million at March 31, 2014, $311.9 million at December 31,
2013 and $334.4 million at June 30, 2013. Loans delinquent 60 to 89 days
amounted to $136.5 million at June 30, 2014 as compared to $157.1 million at
March 31, 2014, $161.5 million at December 31, 2013 and $212.6 million at June
30, 2013.

The allowance for loan losses amounted to $255.0 million at June 30, 2014 as
compared to $276.1 million at December 31, 2013. The allowance for loan
losses as a percent of total loans and as a percent of non-performing loans
was 1.10% and 25.29%, respectively, at June 30, 2014, as compared to 1.18% and
26.73%, respectively, at June 30, 2013 and 1.15% and 26.31%, respectively, at
December 31, 2013.

Net charge-offs amounted to $10.7 million for the second quarter of 2014 as
compared to $16.3 million for the second quarter of 2013 and $10.4 million for
the linked first quarter of 2014. The ratio of net charge-offs to average
loans was 0.18% for each of the second quarter of 2014 and the first quarter
of 2014, as compared to 0.26% for the second quarter of 2013.

Total non-interest income was $21.2 million for the second quarter of 2014 as
compared to $9.6 million for the second quarter of 2013. Included in
non-interest income for the second quarter of 2014 were $19.5 million in gains
from the sale of $565.6 million of mortgage-backed securities. Gains on the
sales of securities amounted to $7.2 million in the second quarter of 2013.
The remainder of non-interest income is primarily made up of service fees and
charges on deposit and loan accounts.

Total non-interest income was $38.9 million for the first six months of 2014
as compared to $12.1 million for the same period in 2013. Included in
non-interest income for the first six months 2014 were $35.5 million in gains
from the sale of $984.9 million of mortgage-backed securities. Gains on the
sales of securities amounted to $7.2 million for the six months ended June 30,
2013.

We sold these mortgage-backed securities during 2014 to take advantage of
current market demand and prices in advance of an anticipated rising interest
rate environment.

Total non-interest expense decreased $3.5 million to $73.1 million for the
second quarter of 2014 as compared to $76.6 million for the second quarter of
2013. This decrease was due to a $6.5 million decrease in Federal deposit
insurance expense partially offset by a $3.5 million increase in other
non-interest expense.

Compensation and employee benefit costs decreased $208,000, or 0.6%, to $32.4
million for the second quarter of 2014 as compared to $32.6 million for the
same period in 2013. The decrease in compensation and employee benefit costs
is primarily due to a $2.3 million decrease in compensation expense and a $1.3
million decrease in postretirement benefit costs, partially offset by
increases of $1.9 million in medical plan expenses and $1.2 million in stock
benefit plan expense. The increase in stock benefit plan expense was due
primarily to an increase in the market price of our common stock. At June 30,
2014, we had 1,514 full-time equivalent employees as compared to 1,522 at June
30, 2013.

For the quarter ended June 30, 2014, Federal deposit insurance expense
decreased $6.5 million, or 33.2%, to $13.1 million from $19.6 million for the
quarter ended June 30, 2013. The decrease in Federal deposit insurance
expense for the quarter ended June 31, 2014 is primarily due to a reduction in
the size of our balance sheet and a decrease in our assessment rate.

Other non-interest expense increased $3.5 million to $18.2 million for the
quarter ended June 30, 2014 as compared to $14.7 million for the second
quarter of 2013. This increase was due primarily to an increase of $1.8
million in professional service fees and an increase of $691,000 in foreclosed
real estate expenses.

The increase in professional service fees is due primarily to fees related to
the use of consultants to assist the Company in preparing its capital stress
tests and capital plan as well as the use of consultants to supplement
staffing during the pendency of the merger with M&T Bank Corporation (the
"Merger").

Included in other non-interest expense were write-downs on foreclosed real
estate and net gains and losses on the sale of foreclosed real estate which
amounted to a net gain of $592,000 for the second quarter of 2014 as compared
to net gain of $803,000 for the second quarter of 2013. We sold 70 properties
during the second quarter of 2014 and had 228 properties in foreclosed real
estate with a carrying value of $77.8 million, 85 of which were under contract
to sell as of June 30, 2014. For the second quarter of 2013, we sold 58
properties and had 149 properties in foreclosed real estate with a carrying
value of $61.6 million, of which 35 were under contract to sell as of June 30,
2013.

Total non-interest expense amounted to $152.8 million for the six months ended
June 30, 2014 as compared to $157.9 million for the six months ended June 30,
2013.

Compensation and employee benefit costs increased $1.8 million, or 2.8%, to
$66.0 million for the first six months of 2014 as compared to $64.2 million
for the same period in 2013. The increase in compensation costs is primarily
due to increases of $3.1 million in stock benefit plan expense and $2.9
million in medical plan expenses. The increases were partially offset by
decreases of $2.9 million in pension plan expense and $1.9 million in
compensation expense.

For the six months ended June 30, 2014 Federal deposit insurance expense
decreased $16.7 million, or 38.2%, to $27.0 million from $43.7 million for the
six months ended June 30, 2013. This decrease was due primarily to a
reduction in the size of our balance sheet and a decrease in our assessment
rate.

For the six months ended June 30, 2014, other non-interest expense increased
$9.2 million to $40.7 million as compared to $31.5 million for the same period
in 2013. This increase was due to an increase of $2.2 million in foreclosed
property expenses, a $4.0 million increase in professional fees and a $3.0
million increase in our reserve related to our claim against the Lehman
Brothers, Inc. estate.

The Bank had two collateralized borrowings in the form of repurchase
agreements totaling $100.0 million with Lehman Brothers, Inc. that were
secured by mortgage-backed securities with an amortized cost of approximately
$114.1 million. The trustee for the liquidation of Lehman Brothers, Inc. (the
"Trustee") notified the Bank in the fourth quarter of 2011 that it considered
our claim to be a non-customer claim, which has a lower payment preference
than a customer claim and that the value of such claim is approximately $13.9
million representing the excess of the fair value of the collateral over the
$100.0 million repurchase price. At that time we established a reserve of
$3.9 million against the receivable balance at December 31, 2011. On June 25,
2013, the Bankruptcy Court affirmed the Trustee's determination that the
repurchase agreements did not entitle the Bank to customer status and on
February 26, 2014, the U.S. District Court upheld the Bankruptcy Court's
decision that our claim should be treated as a non-customer claim. As a
result, we increased our reserve by $3.0 million to $6.9 million against the
receivable balance during the first quarter of 2014.

Included in other non-interest expense were write-downs on foreclosed real
estate and net gains and losses on the sale of foreclosed real estate which
amounted to a net gain of $670,000 for the six months ended June 30, 2014 as
compared to a net gain of $407,000 for the comparable period in 2013. We sold
116 properties during the first six months of 2014 as compared to 91
properties for the same period in 2013. Expenses associated with foreclosed
real estate were $8.4 million and $6.2 million for the six months ended June
30, 2014 and 2013, respectively.

Our efficiency ratio was 52.65% for the 2014 second quarter as compared to
45.22% for the 2013 second quarter. For the six months ended June 30, 2014,
our efficiency ratio was 51.85% compared with 45.19% for the corresponding
2013 period. The calculation of the efficiency ratio is included in a table
contained in this press release. Our return on average assets was 0.41% for
the 2014 second quarter as compared to 0.49% for the 2013 second quarter. Our
annualized ratio of non-interest expense to average total assets for the
second quarter of 2014 was 0.77% as compared to 0.76% for the second quarter
of 2013. Our annualized ratio of non-interest expense to average total assets
for the six months ended June 30, 2014 was 0.80% compared with 0.78% for the
corresponding period of 2013.

Income tax expense amounted to $26.6 million for the second quarter of 2014 as
compared to income tax expense of $31.6 million for the corresponding period
in 2013. Our effective tax rate for the second quarter of 2014 was 40.41%
compared with 39.34% for the second quarter of 2013. Income tax expense
amounted to $54.4 million for the six months ended June 30, 2014 compared with
income tax expense of $62.3 million for the six months ended June 30, 2013.
Our effective tax rate for the six months ended June 30, 2014 was 39.99%
compared with 39.20% for the six months ended June 30, 2013.

Hudson City Bancorp, Inc. maintains its corporate offices in Paramus, New
Jersey. Hudson City Savings Bank, a well-established community financial
institution serving its customers since 1868, is the largest thrift
institution headquartered in New Jersey. Hudson City Savings Bank currently
operates a total of 135 banking offices in the New York metropolitan and
surrounding areas.

Annual Shareholders Meeting

The 2014 Annual Meeting of Shareholders will be held on Tuesday, December 16,
2014. The voting record date will be October 21, 2014.

Given the extension of the Merger Agreement through December 31, 2014 agreed
to with M&T Bank Corporation, we have decided to schedule the 2014 Annual
Meeting of Shareholders to be held on December 16, 2014 in order to comply
with the NASDAQ corporate governance requirements. If the closing of the
Merger occurs prior to December 16, 2014, the 2014 Annual Meeting of
Shareholders will not be held.

Date for Submission of Shareholder Proposals

A shareholder that wishes to submit a shareholder proposal intended for
inclusion in our proxy statement and proxy card relating to our 2014 Annual
Meeting of Shareholders must submit the proposal to our Corporate Secretary by
mail at Hudson City Bancorp, Inc., West 80 Century Road, Paramus, New Jersey
07652. Any such shareholder proposal must be received by our Corporate
Secretary no later than 4:00 pm on August 15, 2014. A shareholder seeking to
submit a shareholder proposal must be a shareholder of record and such
proposal must set forth the information required by the bylaws of Hudson City
Bancorp, Inc. Nothing in this paragraph shall be deemed to require Hudson
City Bancorp to include in its proxy statement and proxy card for such meeting
any shareholder proposal which does not meet the requirements of the
Securities and Exchange Commission in effect at the time such proposal is
received. Any such proposal will be subject to 17 C.F.R. § 240.14a-8 of the
rules and regulations promulgated by the Securities and Exchange Commission
under the Securities Exchange Act of 1934, as amended.

Forward-Looking Statements

This release may contain certain "forward looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 that are based
on certain assumptions and describe future plans, strategies and expectations
of Hudson City Bancorp, Inc. Such forward-looking statements may be
identified by the use of such words as "may," "believe," "expect,"
"anticipate," "should," "plan," "estimate," "predict," "continue," "probable,"
and "potential" or the negative of these terms or other comparable
terminology. Examples of forward-looking statements include, but are not
limited to, estimates with respect to the financial condition, results of
operations and business of Hudson City Bancorp, Inc. and Hudson City Bancorp,
Inc.'s strategies, plans, objectives, expectations, and intentions, including
the Merger and the Strategic Plan, and other statements contained in this
release that are not historical facts. Hudson City Bancorp, Inc.'s ability to
predict results or the actual effect of future plans or strategies, including
the Merger and the implementation of the Strategic Plan, is inherently
uncertain and actual results and performance could differ materially from
those contemplated or implied by these forward-looking statements. They can be
affected by inaccurate assumptions Hudson City Bancorp, Inc. might make or by
known or unknown risks and uncertainties. Factors that could cause assumptions
to be incorrect include, but are not limited to, changes in interest rates,
general economic conditions, legislative, regulatory and public policy
changes, Hudson City Bancorp Inc's ability to successfully implement the
Strategic Plan initiatives, further delays in closing the Merger and the
ability of Hudson City Bancorp, Inc. or M&T Bank Corporation to obtain
regulatory approvals and meet other closing conditions to the Merger. These
risks and uncertainties should be considered in evaluating forward-looking
statements and undue reliance should not be placed on such statements. For a
summary of important factors that could affect Hudson City Bancorp, Inc.'s
forward-looking statements, please refer to Hudson City Bancorp, Inc.'s
filings with the Securities and Exchange Commission available at www.sec.gov.
Hudson City Bancorp, Inc. does not intend to update any of the forward-looking
statements after the date of this release or to conform these statements to
actual events.



Hudson City Bancorp, Inc. and Subsidiary
Consolidated Statements of Financial Condition
                                     June 30,             December 31,
                                     2014                 2013
(In thousands, except share and per  (unaudited)
share amounts)
Assets:
Cash and due from banks              $           $         
                                     128,637              133,665
Federal funds sold and other         5,322,044            4,190,809
overnight deposits
 Total cash and cash        5,450,681            4,324,474
equivalents
Securities available for sale:
 Mortgage-backed securities        5,781,024            7,167,555
 Investment securities            903,003              297,283
Securities held to maturity:
 Mortgage-backed securities       1,516,666            1,784,464
 Investment securities            39,011               39,011
       Total securities              8,239,704            9,288,313
Loans                               23,154,711           24,112,829
 Net deferred loan costs           104,597              105,480
 Allowance for loan losses         (255,011)            (276,097)
       Net loans                     23,004,297           23,942,212
Federal Home Loan Bank of New York   337,295              347,102
stock
Foreclosed real estate, net          77,803               70,436
Accrued interest receivable          45,681               52,887
Banking premises and equipment, net  61,074               65,353
Goodwill                             152,109              152,109
Other assets                         332,001              364,468
        Total Assets        $              $      
                                     37,700,645          38,607,354
Liabilities and Shareholders'
Equity:
Deposits:
 Interest-bearing           $              $      
                                     19,845,215          20,811,108
 Noninterest-bearing        668,620              661,221
       Total deposits                20,513,835           21,472,329
Repurchase agreements                6,150,000            6,950,000
Federal Home Loan Bank of New York   6,025,000            5,225,000
advances
       Total borrowed funds          12,175,000           12,175,000
Accrued expenses and other           198,918              217,449
liabilities
       Total liabilities             32,887,753           33,864,778
Common stock, $0.01 par value,
3,200,000,000 shares authorized;
       741,466,555 shares issued;
       528,752,920 and 528,419,170
       shares
       outstanding each at June 30,  7,415                7,415
       2014 and December 31, 2013
Additional paid-in capital          4,747,434            4,743,388
Retained earnings                    1,925,398            1,883,754
Treasury stock, at cost;
212,713,635 and 213,047,385 shares
at
       June 30, 2014 and December    (1,709,727)          (1,712,107)
       31, 2013
Unallocated common stock held by     (183,207)            (186,210)
the employee stock ownership plan
Accumulated other comprehensive      25,579               6,336
income, net of tax
       Total shareholders' equity    4,812,892            4,742,576
        Total Liabilities   $              $      
       and Shareholders' Equity      37,700,645          38,607,354



Hudson City Bancorp, Inc. and Subsidiary
Consolidated Statements of Income
(Unaudited)
                            For the Three Months      For the Six Months
                            Ended June 30,            Ended June 30,
                            2014         2013         2014         2013
                            (In thousands, except share data)
Interest and Dividend
Income:
 First mortgage loans       $          $          $          $  
                            247,124     283,857     500,263     578,247
 Consumer and other loans   2,199        2,611        4,477        5,316
 Mortgage-backed
 securities held to         10,128       20,614       21,339       44,610
 maturity
 Mortgage-backed
 securities available for   31,595       32,051       69,085       68,962
 sale
 Investment securities      585          586          1,170        1,171
 held to maturity
 Investment securities      920          2,305        1,714        4,703
 available for sale
 Dividends on Federal Home
 Loan Bank of New York      3,338        3,516        7,494        7,724
 stock
 Federal funds sold and     3,316        1,969        6,202        2,841
 other overnight deposits
  Total interest and    299,205      347,509      611,744      713,574
 dividend income
Interest Expense:
 Deposits                   40,173       46,604       80,811       95,743
 Borrowed funds             141,350      141,052      280,915      280,595
  Total interest        181,523      187,656      361,726      376,338
 expense
   Net interest income      117,682      159,853      250,018      337,236
Provision for Loan Losses   -            12,500       -            32,500
   Net interest income
   after provision for      117,682      147,353      250,018      304,736
   loan losses
Non-Interest Income:
 Service charges and other  1,645        2,405        3,460        4,938
 income
 Gain on securities         19,539       7,183        35,482       7,183
 transactions, net
  Total non-interest    21,184       9,588        38,942       12,121
 income
Non-Interest Expense:
 Compensation and employee  32,405       32,613       66,016       64,214
 benefits
 Net occupancy expense      9,433        9,723        19,144       18,533
 Federal deposit insurance  13,086       19,600       27,010       43,675
 assessment
 Other expense              18,184       14,685       40,651       31,454
  Total non-interest    73,108       76,621       152,821      157,876
 expense
   Income before income     65,758       80,320       136,139      158,981
   tax expense
Income Tax Expense          26,576       31,598       54,436       62,328
   Net income               $         $         $         $   
                            39,182      48,722      81,703      96,653
Basic Earnings Per Share    $       $       $       $     
                            0.08        0.10        0.16        0.19
Diluted Earnings Per Share  $       $       $       $     
                            0.08        0.10        0.16        0.19
Weighted Average Number of
Common Shares Outstanding:
   Basic                    498,874,695  497,720,918  498,646,420  497,527,375
   Diluted                  499,838,263  498,070,995  498,995,842  497,722,679



Hudson City Bancorp, Inc. and Subsidiary
Consolidated Average Balance Sheets
(Unaudited)
                        For the Three Months Ended June 30,
                        2014                            2013
                                              Average                         Average
                        Average               Yield/    Average               Yield/
                        Balance     Interest  Cost      Balance     Interest  Cost
                        (Dollars in thousands)
Assets:
Interest-earnings
assets:
  First mortgage loans, $          $        4.28    % $          $         4.50    %
  net (1)               23,083,914  247,124             25,206,816  283,857
  Consumer and other    207,456     2,199     4.24      231,791     2,611     4.51
  loans
  Federal funds sold
  and other overnight   5,252,541   3,316     0.25      2,938,417   1,969     0.27
  deposits
  Mortgage-backed
  securities at         7,646,018   41,723    2.18      9,706,470   52,665    2.17
  amortized cost
  Federal Home Loan     337,942     3,338     3.95      347,822     3,516     4.04
  Bank stock
  Investment
  securities, at        539,141     1,505     1.12      521,924     2,891     2.22
  amortized cost
    Total
    interest-earning    37,067,012  299,205   3.23      38,953,240  347,509   3.57
    assets
Noninterest-earnings    901,004                         1,101,710
assets (4)
    Total Assets        $                              $ 
                        37,968,016                      40,054,950
Liabilities and
Shareholders' Equity:
Interest-bearing
liabilities:
  Savings accounts      1,045,799   392       0.15      $        504       0.21
                                                        982,386
  Interest-bearing      2,163,365   1,558     0.29      2,232,757   1,853     0.33
  transaction accounts
  Money market accounts 4,788,273   2,366     0.20      6,078,945   3,967     0.26
  Time deposits         12,112,789  35,857    1.19      12,940,974  40,280    1.25
    Total
    interest-bearing    20,110,226  40,173    0.80      22,235,062  46,604    0.84
    deposits
  Repurchase agreements 6,150,000   69,083    4.44      6,950,000   78,283    4.46
  Federal Home Loan
  Bank of New York      6,025,000   72,267    4.75      5,225,000   62,769    4.75
  advances
    Total borrowed      12,175,000  141,350   4.59      12,175,000  141,052   4.58
    funds
    Total
    interest-bearing    32,285,226  181,523   2.23      34,410,062  187,656   2.19
    liabilities
Noninterest-bearing
liabilities:
  Noninterest-bearing   659,994                         644,520
  deposits
  Other
  noninterest-bearing   204,034                         243,891
  liabilities
    Total
    noninterest-bearing 864,028                         888,411
    liabilities
  Total liabilities     33,149,254                      35,298,473
Shareholders' equity    4,818,762                       4,756,477
    Total Liabilities   $                              $ 
    and Shareholders'   37,968,016                      40,054,950
    Equity
Net interest income/net             $                              $
interest rate spread                117,682   1.00                  159,853  1.38
(2)
                                              1.29
Net interest-earning    $                             $  
assets/net interest     4,781,786             1.29    % 4,543,178             1.64    %
margin (3)
Ratio of
interest-earning assets
to
  interest-bearing                            1.15    x                       1.13    x
  liabilities
(1) Amount includes deferred loan costs and non-performing loans and is net of the
    allowance for loan losses.
    Determined by subtracting the annualized weighted average cost of total
(2) interest-bearing liabilities from the annualized weighted average yield on total
    interest-earning assets.
(3) Determined by dividing annualized net interest income by total average
    interest-earning assets.
(4) Includes the average balance of principal receivable related to FHLMC
    mortgage-backed securities of $42.5 million and $112.3 million
    for the quarters ended June
    30, 2014 and 2013,
    respectively.



Hudson City Bancorp, Inc. and Subsidiary
Consolidated Average Balance Sheets
(Unaudited)
                        For the Six Months Ended June 30,
                        2014                            2013
                                              Average                         Average
                        Average               Yield/    Average               Yield/
                        Balance     Interest  Cost      Balance     Interest  Cost
                        (Dollars in thousands)
Assets:
Interest-earnings
assets:
  First mortgage loans, $          $         4.29    % $          $         4.50    %
  net (1)               23,309,914  500,263            25,692,014  578,247
  Consumer and other    209,764     4,477     4.27      238,701     5,316     4.45
  loans
  Federal funds sold
  and other overnight   4,942,571   6,202     0.25      2,311,499   2,841     0.25
  deposits
  Mortgage-backed
  securities at         8,034,614   90,424    2.25      9,997,654   113,572   2.27
  amortized cost
  Federal Home Loan     342,496     7,494     4.38      352,121     7,724     4.39
  Bank stock
  Investment
  securities, at        442,286     2,884     1.30      487,337     5,874     2.41
  amortized cost
    Total
    interest-earning    37,281,645  611,744   3.28      39,079,326  713,574   3.65
    assets
Noninterest-earnings    905,703                         1,194,491
assets (4)
    Total Assets        $                              $ 
                        38,187,348                      40,273,817
Liabilities and
Shareholders' Equity:
Interest-bearing
liabilities:
  Savings accounts      1,033,539   770       0.15      $        1,105     0.23
                                                        972,192
  Interest-bearing      2,179,399   3,118     0.29      2,252,840   3,988     0.36
  transaction accounts
  Money market accounts 4,985,144   4,839     0.20      6,330,416   9,553     0.30
  Time deposits         12,212,864  72,084    1.19      12,950,186  81,097    1.26
    Total
    interest-bearing    20,410,946  80,811    0.80      22,505,634  95,743    0.86
    deposits
  Repurchase agreements 6,401,934   142,730   4.43      6,950,000   155,337   4.45
  Federal Home Loan
  Bank of New York      5,773,066   138,185   4.76      5,225,000   125,258   4.77
  advances
    Total borrowed      12,175,000  280,915   4.59      12,175,000  280,595   4.58
    funds
    Total
    interest-bearing    32,585,946  361,726   2.21      34,680,634  376,338   2.19
    liabilities
Noninterest-bearing
liabilities:
  Noninterest-bearing   591,218                         576,235
  deposits
  Other
  noninterest-bearing   207,396                         271,296
  liabilities
    Total
    noninterest-bearing 798,614                         847,531
    liabilities
  Total liabilities     33,384,560                      35,528,165
Shareholders' equity    4,802,788                       4,745,652
    Total Liabilities   $                              $ 
    and Shareholders'   38,187,348                      40,273,817
    Equity
Net interest income/net             $                               $
interest rate spread                250,018  1.07                  337,236  1.46
(2)
Net interest-earning    $                             $  
assets/net interest     4,695,699             1.35    % 4,398,692             1.71    %
margin (3)
Ratio of
interest-earning assets
to
  interest-bearing                            1.14    x                       1.13    x
  liabilities
(1) Amount includes deferred loan costs and non-performing loans and is net of the
    allowance for loan losses.
    Determined by subtracting the annualized weighted average cost of total
(2) interest-bearing liabilities from the annualized weighted average yield on total
    interest-earning assets.
(3) Determined by dividing annualized net interest income by total average
    interest-earning assets.
(4) Includes the average balance of principal receivable related to FHLMC
    mortgage-backed securities of $46.4 million and $112.8 million
    for the six months ended June
    30, 2014 and 2013,
    respectively.



Hudson City Bancorp, Inc. and Subsidiary
Calculation of Efficiency Ratio and Book Value Ratios
(Unaudited)
                   At or for the Quarter Ended
                   June 30, 2014  March 31,      Dec. 31, 2013  Sept. 30,      June 30, 2013
                                  2014                          2013
                   (In thousands, except share data)
Efficiency Ratio:
    Net interest   $           $          $         $          $    
    income         117,682        132,336        135,864        139,413        159,853
    Total
    non-interest   21,184         17,758         13,512         13,456         9,588
    income
     Total       $           $          $         $          $    
    operating      138,866        150,094        149,376        152,869        169,441
    income
    Total          $          $         $        $         $     
    non-interest   73,108         79,713         73,473         78,488         76,621
    expense
    Less:
    
    Merger-related -              -              (623)          -              -
    costs
     Valuation
    allowance
    related to
     Lehman   -              (3,000)        -              -              -
    Brothers, Inc.
     Total
    non-interest   $          $         $        $         $     
    operating      73,108         76,713         72,850         78,488         76,621
    expense
    Efficiency     52.65%         51.11%         48.77%         51.34%         45.22%
    ratio (1)
Book Value
Calculations:
    Shareholders'  $             $            $           $            $  
    equity        4,812,892     4,782,858     4,742,576     4,689,105     4,660,900
    Goodwill and
    other          (152,724)      (152,972)      (153,218)      (153,469)      (153,721)
    intangible
    assets
    Tangible       $             $            $           $            $  
    shareholders'  4,660,168     4,629,886     4,589,358     4,535,636     4,507,179
    equity
    Book Value
    Share
    Computation:
               741,466,555    741,466,555    741,466,555    741,466,555    741,466,555
    Issued
     Treasury  (212,713,635)  (213,019,266)  (213,047,385)  (213,047,385)  (213,047,385)
    shares
    
    Shares         528,752,920    528,447,289    528,419,170    528,419,170    528,419,170
    outstanding
    
    Unallocated    (29,346,631)   (29,587,177)   (29,827,724)   (30,068,270)   (30,308,816)
    ESOP shares
     Shares in (429,657)      (427,916)      (426,103)      (396,754)      (396,906)
    trust
    
    Book value     498,976,632    498,432,196    498,165,343    497,954,146    497,713,448
    shares
    Book value per $        $        $        $        $      
    share          9.65            9.60           9.52        9.42          9.36
    Tangible book
    value per      9.34           9.29           9.21           9.11           9.06
    share
(1) Calculated by dividing total non-interest operating expense by total operating income.
    These measures are non-GAAP financial measures.
    We believe these measures, by excluding merger-related costs and the valuation allowance
    related to Lehman Brothers, provides a better
    measure of our non-interest
    income and expenses.



Hudson City Bancorp, Inc.
Other Financial Data
(Unaudited)
Securities Portfolio at June 30, 2014:
                                 Amortized  Estimated        Unrealized
                                 Cost       Fair Value       Gain/(Loss)
                                            (Dollars in
                                            thousands)
Held to Maturity:
Mortgage-backed securities:
 FHLMC                        $       $         $        
                                 1,003,136  1,065,566            62,430
 FNMA                         345,832    369,828          23,996
 FHLMC and FNMA CMO's         109,202    115,169          5,967
 GNMA                         58,496     60,254           1,758
 Total mortgage-backed     1,516,666  1,610,817        94,151
securities
Investment securities:
 U.S. agency debt            39,011     42,350           3,339
 Total investment          39,011     42,350           3,339
securities
Total held to maturity           $       $         $        
                                 1,555,677  1,653,167            97,490
Available for sale:
Mortgage-backed securities:
 FHLMC                        $       $         $        
                                 1,746,033  1,779,303            33,270
 FNMA                         3,230,646  3,266,886        36,240
 GNMA                         712,480    734,834          22,354
 Total mortgage-backed     5,689,160  5,781,024        91,864
securities
Investment securities:
 U.S. Treasury and agency    899,159    895,779          (3,380)
securities
 Equity securities           6,873      7,224            351
 Total investment          906,032    903,003          (3,029)
securities
Total available for sale       $       $         $        
                                 6,595,192  6,684,027            88,835



Hudson City Bancorp, Inc.
Other Financial Data
(Unaudited)
Loan Data at June 30, 2014:
                    Non-Performing Loans         Total Loans
                    Loan                 Percent  Loan                 Percent
                                         of                           of
                    Balance    Number  Total    Balance     Number Total
                                         Loans                         Loans
                                         (Dollars in
                                         thousands)
First Mortgage
Loans:
One- to four-       $       2,411     3.70%    $         54,075   95.44%
family              858,236                      22,097,151
FHA/VA              134,417    570       0.58%    740,159     3,789    3.20%
PMI                 6,912      21        0.03%    93,712      320      0.40%
Construction        177        1         0.00%    177         1        0.00%
Commercial          1,044      3         0.00%    18,812      54       0.08%
 Total mortgage   1,000,786  3,006     4.31%    22,950,011  58,239   99.12%
loans
Home equity loans   5,823      72        0.03%    185,124     5,195    0.80%
Other loans         1,644      3         0.01%    19,576      1,857    0.08%
 Total           $        3,081     4.35%    $         65,291   100.00%
                    1,008,253                     23,154,711



Foreclosed real estate at June 30, 2014:
                                Carrying                 Number Under
                        Number  Value                    Contract of Sale
                                (Dollars in thousands)
Foreclosed real estate  228     $    77,803          85



Hudson City Bancorp, Inc. and Subsidiary
Other Financial Data
(Unaudited)
                At or for the Quarter Ended
                June 30,     March 31,   Dec. 31,     Sept. 30,    June 30,
                2014         2014        2013         2013         2013
                (Dollars in thousands, except per share data)
Net interest    $       $       $       $       $     
income           117,682            135,864      139,413        159,853
                             132,336
Provision for   -            -           -            4,000        12,500
loan losses
Non-interest    21,184       17,758      13,512       13,456       9,588
income
Non-interest
expense:
 Compensation
and employee    32,405       33,611      33,717       34,802       32,613
benefits
 FDIC
insurance       13,086       13,924      10,938       18,850       19,600
assessment
 Other
non-interest    27,617       32,178      28,818       24,836       24,408
expense
Total
non-interest    73,108       79,713      73,473       78,488       76,621
expense
Income before
income tax      65,758       70,381      75,903       70,381       80,320
expense
Income tax      26,576       27,860      30,074       27,647       31,598
expense
                $       $       $       $       $     
Net income                          45,829      42,734       
                39,182       42,521                               48,722
Total assets   $        $       $          $          $    
                37,700,645  38,230,626  38,607,354  39,186,560  39,696,453
Loans, net     23,004,297   23,578,711  23,942,212   24,362,961   24,977,668
Mortgage-backed 7,297,690    8,190,893   8,952,019    9,686,630    10,311,102
securities
Other           942,014      338,037     336,294      337,656      336,165
securities
Deposits       20,513,835   21,065,582  21,472,329   22,079,731   22,619,271
Borrowings      12,175,000   12,175,000  12,175,000   12,175,000   12,175,000
Shareholders'   4,812,892    4,782,858   4,742,576    4,689,105    4,660,900
equity
Performance
Data:
Return on
average assets  0.41%        0.44%       0.47%        0.43%        0.49%
(1)
Return on
average equity  3.25%        3.55%       3.87%        3.63%        4.10%
(1)
Net interest    1.00%        1.12%       1.20%        1.22%        1.38%
rate spread(1)
Net interest    1.29%        1.41%       1.47%        1.48%        1.64%
margin (1)
Non-interest
expense to      0.77%        0.83%       0.76%        0.80%        0.76%
average assets
(1) (4)
Compensation
and benefits to 23.34%       22.39%      22.57%       22.77%       19.25%
total revenue
(5)
Operating
efficiency      52.65%       51.11%      48.77%       51.34%       45.22%
ratio (2)
Dividend payout 50.00%       44.44%      44.44%       44.44%       40.00%
ratio
Per Common
Share Data:
Basic earnings
per common      $0.08        $0.09       $0.09        $0.09        $0.10
share
Diluted
earnings per    $0.08        $0.09       $0.09        $0.09        $0.10
common share
Book value per  $9.65        $9.60       $9.52        $9.42        $9.36
share (3)
Tangible book
value per share $9.34        $9.29       $9.21        $9.11        $9.06
(3)
Dividends per   $0.04        $0.04       $0.04        $0.04        $0.04
share
Capital Ratios:
Equity to total
assets          12.77%       12.51%      12.28%       11.97%       11.74%
(consolidated)
Tier 1 leverage 11.26%       11.03%      10.82%       10.57%       10.41%
capital (Bank)
Total
risk-based      26.91%       26.10%      25.31%       24.40%       23.78%
capital (Bank)
Other Data:
Full-time
equivalent      1,514        1,535       1,520        1,525        1,522
employees
Number of       135          135         135          135          135
banking offices
Asset Quality
Data:
Total           $       $       $         $         $     
non-performing  1,008,253              1,049,244   1,071,196   1,112,206
loans                       1,026,591
Number of
non-performing  3,081        3,185       3,233        3,288        3,414
loans
Total number of 65,291       66,492      67,046       67,940       69,578
loans
Total           $       $       $         $         $     
non-performing  1,086,056              1,119,680   1,136,902   1,173,778
assets                      1,105,182
Non-performing
loans to total  4.35%        4.32%       4.35%        4.36%        4.42%
loans
Non-performing
assets to total 2.88%        2.89%       2.90%        2.90%        2.96%
assets
Allowance for   $       $       $       $       $     
loan losses       255,011            276,097      291,007        297,288
                             265,732
Allowance for
loan losses to  25.29%       25.88%      26.31%       27.17%       26.73%
non-performing
loans
Allowance for
loan losses to  1.10%        1.12%       1.15%        1.19%        1.18%
total loans
Provision for   $       $       $       $       $     
loan losses                           4,000      
                  -           -    -                         12,500
                $       $       $       $       $     
Net charge-offs                     14,910      10,281       
                10,722       10,365                               16,305
Ratio of net
charge-offs to  0.18%        0.18%       0.24%        0.17%        0.26%
average loans
(1)
Net gains       $       $                                 $     
(losses) on                    $       $           
foreclosed real 592           78         908      346   803
estate
(1) Ratios are
annualized.
(2) See page 16 for a calculation of
our Operating Efficiency Ratios.
(3) See page 16 for the Book Value
Calculations for book value per share
and tangible book value per share.
(4) Computed by dividing non-interest
expense by average assets.
(5) Computed by dividing compensation
and benefits by the sum of net interest
income and non-interest income.



SOURCE Hudson City Bancorp, Inc.

Website: https://www.hcsbonline.com
Contact: Susan Munhall, Investor Relations, Hudson City Bancorp, Inc.,
TELEPHONE: (201) 967-8290, E-MAIL: smunhall@hcsbnj.com
 
Press spacebar to pause and continue. Press esc to stop.